Match the following phases of trade cycles with the level of economic activity associated with each…
Recession involves a downturn, while boom represents very high economic activity. Depression corresponds to a low level of activity, and recovery brings an upward trend.
Choose your answer
Match the following phases of trade cycles with the level of economic activity associated with each phase:
| Phases of trade cycles | Level of economic activity |
| a) Recession | i) Very high |
| b) Boom | ii) Down turn |
| c) Economic depression | iii) Upward trend |
| d) Recovery | iv) Low |
Answer and explanation
Correct answer D
Recession involves a downturn, while boom represents very high economic activity. Depression corresponds to a low level of activity, and recovery brings an upward trend.
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Telangana SET (TG SET)